By: Doug Rosen
The new weekly candle for the EUR/USD opens up around 120 pips below the weekly 5 ema. As I have stated time and time again and have been proven correct every single time, price needs to make its way back up to the 5 ema at least just to tap it. It does not need to spend time at the 5 ema, just a quick tap or a kiss if you will for price to capture the energy it needs to continue on its trajectory in whichever direction it is heading in. The 5 ema could be regarded as a fuel supply for price.
Looking at the daily timeframe the 38.2 fib zone of the previous swing down is 1.3176 and is overlapped with the 21 ema and price last week already touched that area and was rejected, so if price can make it back to that area since it is in t e vicinity of the weekly 5 ema I just commented on it can be regarded as a double top and tank if it hits that level. Meanwhile, the stochastics is in the oversold zone so a short trip up is very realistic.
On the 4 hour timeframe price is in the nose of a triangle pattern price trap and is in the middle of braided ema's so I don't expect much follow through and since this will be a very thin market since it is a Bank Holiday for most of the world I don't expect much to happen.
On the hourly timeframe the triangle price trap is even more obvious but once again I don't expect much to come out of it today.
I will remind you all once again until you are all used to it that I have provided a table of levels for you all to monitor. We will called it Doug's Matrix since it is of my own design and my name is Doug. It is simply a table that displays every pivot point from the monthly all the way down to the 15 minute, however, by the time you view it the 15 minute and hourly data will already be expired but I do recommend keeping an eye on all the other levels. In addition to the Pivot Point levels I have provided the Fib retracements and extensions of the previous candles also over the monthly to 15 minute timeframes but the same thing applies, pay attention mostly to the monthly to the 4 hour since the hourly and 15 minute will be expired. The 4 hour pivot and fib levels are good until 10:00 AM GMT. The levels indicated in Doug's Matrix will keep you out of danger and put you into profitable opportunities.
